Microsoft to Buy 1.5m Tonnes of CO2 Removal Credits in India
Microsoft Corporation

This project reflects how corporate investment in nature-based solutions and collective efforts can help in carbon removal, community development, and climate action.
This is Microsoft's largest CO2 removal project in the Asia-Pacific (APAC) region.
India will witness its largest carbon removal projects following the signing of a deal by Climate Impact Partners, Microsoft, and Terra Natural Capital for the 20,000-hectare Panna afforestation project in the state of Madhya Pradesh.
The project is poised to remove 3 million tonnes of carbon from the atmosphere, with Microsoft making a long-term commitment to buy 1.5 million tonnes of verified carbon removal credits over 30 years, accounting for 50% of the project's total output.
Brian Marrs, Senior Director Energy Markets, Microsoft said: “At Microsoft, we believe that high-quality, nature-based solutions are vital to addressing climate change.
"The collaboration with Climate Impact Partners helps to ensure that millions more trees are planted, more carbon is removed from the atmosphere, more jobs are created, and more finance flows back to local communities.”
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For the project to bear fruit, Terra Natural Capital will provide financial support, Climate Impact Partners will contribute its expertise in project development, and Microsoft will commit to carbon dioxide (CO2) removal. This is the technology giant's largest CO2 removal project in the Asia-Pacific (APAC) region and its first in India.
Erica Vertefeuille, Managing Director, Terra Natural Capital, explained: “We are excited to work with Climate Impact Partners to realize large-scale nature-based carbon removal projects like Panna. This transaction reflects the power of collaboration between trusted project developers, corporate demand, and innovative finance to unlock climate impact.
"We recognize that access to project finance is a critical need for the carbon removal market to scale, and are committed to providing long-term capital that will accelerate project development and empower corporates to achieve their climate targets.”
To know the credibility and impact of the project, it has already undergone three years of due diligence, pilot activities, and third-party assessments.
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One of the important aspects of this initiative is planting trees on community and farmer lands. So far, 1.2 million trees have been planted across 100 communities, with over 11.6 million native trees expected for the second leg.
Farmers benefit greatly from this project as it provides them with economic benefits alongside removing CO2 from the air. They can earn a livelihood through income from carbon credit sales and the sale of fruit and medicinal plants grown from the trees.
The environmental benefits include training programmes on climate-smart agricultural techniques, large-scale water infrastructure, and biodiversity conservation, among others.
Sheri Hickok, CEO Climate Impact Partners, commented: "We are incredibly proud that Microsoft, a company that continues to demonstrate bold, climate-responsible leadership, is supporting Panna, a project developed by our expert team.
"By securing a long-term supply of high-quality carbon credits, this model empowers companies like Microsoft to meet their ambitious climate targets, drive growth in the carbon removal market, and bring benefits to communities most impacted by climate change. Panna exemplifies how companies can help scale large-scale carbon removal infrastructure."
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Source: Climate Impact Partners